Snowflake Earnings on Deck – What To Expect (NYSE: SNOW)

Snowflake Inc. (NYSE: SNOW), the cloud-based data warehousing and analytics powerhouse, is set to release its Q1 fiscal 2026 earnings after the market closes today on the back of a recent rally. With the stock trading at $183, having gained 16.2% YTD, and 33.6% over the past month; both anticipation, and expectations are running high.

Markets are looking for Snowflake to deliver Q1 revenue of $1.01 billion, up 21% year-over-year, and adjusted earnings per share of $0.21 (a 50% increase from the prior year). Product revenue guidance, a key metric for Snowflake, is expected in the $955 million to $961 million range.

Despite its rapid top-line expansion and a market capitalization of $51.53 billion, Snowflake continues to operate at a loss. The company reported a trailing twelve-month operational loss of $1.5 billion and a net loss of $1.3 billion. Snowflake’s customer base is over 3,000 strong, including nearly a third of the Fortune 500. This remains a key asset, but the company’s ability to convert revenue growth into sustainable profitability is a core concern for the market.

The company’s aggressive AI strategy is a central focus this quarter. Recent partnerships, including a multiyear deal with AI leader Anthropic and the acquisition of AI startup Datavolo, are designed to integrate advanced AI capabilities directly into Snowflake’s Data Cloud. These moves allow customers to build and deploy AI applications natively within the platform, eliminating data migration hassles and positioning Snowflake as a one-stop shop for enterprise data and AI needs.

Management has expressed confidence in sustained demand, citing AI-driven workflows and data sharing as growth catalysts. This optimism is echoed by analysts, with JMP Securities recently reiterating a “Market Outperform” rating and a $201 price target on the stock, citing Snowflake’s strong competitive positioning.

The consensus target on Snowflake's stock of $203.36 reflects perceived upside of a little over 10%. Depending on what comes out of the report, we could see a move from either the bulls or bears in extended hours. Here's what we will be looking for:

• Earnings Beat or Miss: A strong earnings beat, particularly on AI-driven product revenue, could propel the stock higher, while any sign of slowing growth or disappointing guidance may lead to downside volatility.
• AI Adoption Trajectory: Updates on the success of AI integrations and customer uptake will be scrutinized, as these are viewed as critical to Snowflake’s future growth narrative.
• Profitability Path: Markets will also be looking for signs of progress toward profitability, given the company’s ongoing operating losses despite rapid revenue expansion.

While the bullish case for Snowflake is compelling, risks remain. The company’s ongoing operating losses, despite strong revenue growth, continue to weigh on investor sentiment. Any sign of slowing revenue growth, disappointing guidance, or delays in AI-driven revenue realization could trigger volatility. Additionally, the broader tech sector’s sensitivity to interest rate movements and macroeconomic conditions adds another layer of uncertainty.